Solar mobility shifts South: Squad Mobility aims for India

The map of global automotive manufacturing is constantly being redrawn, and the latest coordinates point decisively to Pune, India. In a strategic pivot announced in mid-February 2026, Dutch solar vehicle pioneer Squad Mobility confirmed it will manufacture its Solar City Car in India. This move is not merely a search for lower wages, the company claims; it represents a calculated realignment of supply chains away from China, capitalizing on the newly minted EU-India Free Trade Agreement. By situating production in the heart of the 'Global Sun Belt,' Squad Mobility is testing a new blueprint for European industrial competitiveness: designing in the West, building in the Global South, and bypassing the geopolitical bottlenecks that currently plague the electric vehicle sector.

The strategic pivot to Pune

Squad Mobility’s decision to establish operations in Pune places the company within one of the world's most dense automotive ecosystems. Known as the 'Detroit of India,' Pune offers an established network of suppliers that rivals established Western hubs. In the week leading up to February 16, 2026, CEO Robert Hoevers and CTO Chris Klok conducted extensive site visits in the region to solidify partnerships. They engaged with a spectrum of Tier 1 and Tier 2 suppliers, ranging from aluminum extrusion experts to injection molding specialists.

The company has moved beyond theoretical planning; chassis production is already underway in Pune. This rapid deployment highlights the agility of India's manufacturing sector. Unlike the rigid, vertical integration seen in traditional legacy automakers, Squad is tapping into a flexible network of contract manufacturers. This allows for immediate scaling without the capital-intensive burden of building greenfield facilities. The choice of Pune also aligns with the company's 'microfactory' philosophy. By producing core components in the deepest part of the supply chain, Squad can maintain quality control while preparing kits for final assembly in destination markets. This approach reduces shipping inefficiencies and allows the company to navigate complex rules of origin, a critical factor in global trade.

The economics of 'China Plus One'

The economic drivers behind this move are stark. For the last decade, China was the default factory for the world's electric vehicles. However, rising wages and geopolitical friction have eroded that advantage. Data from 2025 indicates that India has emerged as the leader in overall manufacturing cost competitiveness. While manufacturing wages in China have climbed to between $6 and $8 per hour, comparable labor costs in India remain significantly lower, often half those in China. In 2023, the average monthly salary in India’s manufacturing sector was estimated at approximately $400, compared to an annual average of over $15,000 in China.

For a company producing affordable urban mobility solutions like the Squad Solar City Car, these margins are existential. The 'China Plus One' strategy is no longer just a risk-mitigation strategy; it is a financial necessity for European firms. India offers a unique combination of low labor costs and a high-skilled, English-speaking workforce. Furthermore, the Indian government’s 'Make in India' initiative and Production Linked Incentive (PLI) schemes provide structural support that rivals China’s industrial subsidies. By shifting to India, Squad Mobility secures a price point that makes its solar quadricycle viable for mass adoption, protecting its margins against inflation and tariff wars.

Leveraging the trade deal catalyst

The timing of Squad Mobility's expansion correlates directly with the conclusion of the Free Trade Agreement (FTA) between the European Union and India in early 2026. This pact is a massive enabler for cross-border industrial integration. The agreement eliminates tariffs on over 90% of tariff lines, covering the vast majority of trade by value between the two economic blocs. For European automotive companies, this opens a corridor that was previously choked by protectionist duties. India has agreed to reduce its notorious 110% tariff on automobile imports to just 10% for specific quotas, but the real value lies in the supply chain.

The FTA allows for the duty-free movement of critical components, which is essential for Squad's distributed manufacturing model. While finished Battery Electric Vehicles (BEVs) face a five-year exclusion from immediate duty reductions to protect India's domestic industry, the Squad vehicle, technically a light electric quadricycle, may bypass some of the heavier restrictions placed on full-sized passenger cars. Moreover, the agreement’s focus on sustainability and mobility facilitates the transfer of green technology and personnel, thereby smoothing operational friction in running a Dutch-Indian hybrid enterprise. This trade architecture provides Squad with a distinct advantage over competitors still reliant on tariff-heavy Chinese supply chains.

Targeting the global Sun Belt

Beyond the supply side, India represents a massive demand center. The country sits firmly within the 'Global Sun Belt,' a geographical band stretching across Southeast Asia, Africa, and the Middle East where solar irradiance is high. In these regions, the Squad Solar City Car’s value proposition is strongest. The vehicle charges itself via roof-mounted solar panels, reducing dependence on charging infrastructure, which remains patchy in many emerging economies.

With over 5,400 preorders already on the books, Squad is positioning itself to capture the burgeoning Indian market, which is projected to grow by 40% to reach 6 million units annually by 2030. The affordability unlocked by local manufacturing makes the vehicle accessible to India's rising middle class. Furthermore, the chaotic traffic conditions of Indian megacities favor small, agile footprint vehicles over full-sized sedans. By building where they sell, Squad aligns its product directly with the environmental and infrastructural realities of its largest potential market.